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Hong Kong Abolishes Broker Commissions

Updated Jan. 15, 2003 12:12 a.m. ET

The Hong Kong stock exchange announced Wednesday that it would go ahead with plans to abolish minimum brokerage commissions as of April 1, a move expected to intensify competition in the industry. The 0.25% minimum commission for equity trades is "in the best interest of the public," the Hong Kong Exchanges and Clearing Ltd. said in a statement. The exchange's 15-member board approved the proposal Wednesday. It expects the move to lure more investors to the market. The benchmark Hang Seng Index of blue chips ended last year at 9321.29, down 18% from a year earlier, and trading volume has lagged. Smaller...